DOJ proposes remedy to address Apple’s alleged ebook price fixing
TweetFollow Us on Twitter

DOJ proposes remedy to address Apple’s alleged ebook price fixing

The Department of Justice and 33 state attorneys general have submitted to the court a proposed remedy to address Apple's illegal conduct, following the July 10, 2013, U.S. District Court for the Southern District of New York decision finding that Apple conspired to fix the prices of e-books in the United States. The proposed relief "is intended to halt Apple’s anticompetitive conduct, restore lost competition and prevent a recurrence of the illegal activities."
 
"The court found that Apple’s illegal conduct deprived consumers of the benefits of e-book price competition and forced them to pay substantially higher prices," says Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "Under the department’s proposed order, Apple’s illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future."
 
The department’s proposal, if approved by the court, will require Apple to terminate its existing agreements with the five major publishers with which it allegedly conspired -- Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc. -- and to refrain for five years from entering new e-book distribution contracts which would restrain Apple from competing on price. 

Under the department’s proposed remedy, Apple will be prohibited from again serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms. Apple will also be prohibited from entering into agreements with suppliers of e-books, music, movies, television shows or other content that are likely to increase the prices at which Apple’s competitor retailers may sell that content. 

To "reset competition to the conditions" that existed before the conspiracy, Apple must also for two years allow other e-book retailers like Amazon and Barnes & Noble to provide links from their e-book apps to their e-bookstores, allowing consumers who purchase and read e-books on their iPads and iPhones to compare Apple’s prices with those of its competitors.
 
Additionally, the Department of Justice is asking the court to appoint an external monitor to ensure that Apple’s internal antitrust compliance policies are sufficient to catch anticompetitive activities before they result in harm to consumers. The monitor, whose salary and expenses will be paid by Apple, will work with an internal antitrust compliance officer who will be hired by and report exclusively to the outside directors comprising Apple’s audit committee. The antitrust compliance officer will be responsible for training Apple’s senior executives and other employees about the antitrust laws and ensuring that Apple abides by the relief ordered by the court.
 
On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster, for conspiring to end e-book retailers' freedom to compete on price by taking control of pricing from e-book retailers and substantially increasing the prices that consumers paid for e-books.
 
At the same time that it filed the lawsuit, the department reached settlements with three of the publishers -- Hachette, HarperCollins and Simon & Schuster. Those settlements were approved by the court in September 2012.  The department settled with Penguin on Dec. 18, 2012, and with Macmillan on Feb. 8, 2013. The Penguin settlement was approved by the court in May 2013. Final approval of the Macmillan settlement is pending before the court. 

Under the settlements, each publisher was required to terminate agreements that prevented e-book retailers from lowering the prices at which they sell e-books to consumers and to allow for retail price competition in renegotiated e-book distribution agreements.
 
The department’s trial against Apple, which was overseen by Judge Denise Cote, began on June 3, 2013. The trial lasted for three weeks, with closing arguments taking place on June 20. The court issued its opinion that Apple violated Section 1 of the Sherman Act on July 10,.  The court will hold a hearing on remedies on Aug. 9, 2013.

 
AAPL
$108.00
Apple Inc.
+1.02
MSFT
$46.95
Microsoft Corpora
+0.90
GOOG
$559.08
Google Inc.
+8.77

MacTech Search:
Community Search:

Software Updates via MacUpdate

Vitamin-R 2.20b1 - Personal productivity...
Vitamin-R creates the optimal conditions for your brain to work at its best by structuring your work into short bursts of distraction-free, highly focused activity alternating with opportunities for... Read more
Dropbox 2.10.44 - Cloud synchronization...
Dropbox is an application that creates a special Finder folder that automatically syncs online and between your computers. It allows you to both backup files and keep them up-to-date between systems... Read more
Sandvox 2.9.2 - Easily build eye-catchin...
Sandvox is for Mac users who want to create a professional looking website quickly and easily. With Sandvox, you don't need to be a Web genius to build a stylish, feature-rich, standards-compliant... Read more
Cocktail 8.0.1 - General maintenance and...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
LibreOffice 4.3.3.2 - Free Open Source o...
LibreOffice is an office suite (word processor, spreadsheet, presentations, drawing tool) compatible with other major office suites. The Document Foundation is coordinating development and... Read more
VMware Fusion 7.0.1 - Run Windows apps a...
VMware Fusion allows you to create a Virtual Machine on your Mac and run Windows (including Windows 8.1) and Windows software on your Mac. Run your favorite Windows applications alongside Mac... Read more
OneNote 15.3.2 - Free digital notebook f...
OneNote is your very own digital notebook. With OneNote, you can capture that flash of genius, that moment of inspiration, or that list of errands that's too important to forget. Whether you're at... Read more
Audio Hijack Pro 2.11.4 - Record and enh...
Audio Hijack Pro drastically changes the way you use audio on your computer, giving you the freedom to listen to audio when you want and how you want. Record and enhance any audio with Audio Hijack... Read more
Iridient Developer 3.0.0 beta 3 - Powerf...
Iridient Developer (was RAW Developer) is a powerful image conversion application designed specifically for OS X. Iridient Developer gives advanced photographers total control over every aspect of... Read more
TextWrangler 4.5.11 - Free general purpo...
TextWrangler is the powerful general purpose text editor, and Unix and server administrator's tool. Oh, and also, like the best things in life, it's free. TextWrangler is the "little brother" to... Read more

Latest Forum Discussions

See All

Monster Flash Review
Monster Flash Review By Jordan Minor on October 31st, 2014 Our Rating: :: ALONE IN THE DARKUniversal App - Designed for iPhone and iPad Solid shooting and a surprising amount of spooky tension make Monster Flash a great portable... | Read more »
Retry Review
Retry Review By Rob Thomas on October 31st, 2014 Our Rating: :: SOARING HIGHUniversal App - Designed for iPhone and iPad Flappy who? Let Retry wash all those bad bird-related memories away on a cool retro-flavored flight… right... | Read more »
Dementia: Book of the Dead Review
Dementia: Book of the Dead Review By Lee Hamlet on October 31st, 2014 Our Rating: :: A TOUGH READUniversal App - Designed for iPhone and iPad A witch hunter is sent after a demonic book in the spooky but short-lived Dementia: Book... | Read more »
Card Dungeon, the Semi-Board Game Roguel...
Card Dungeon, the Semi-Board Game Roguelike, Has Been Renovated Posted by Jessica Fisher on October 31st, 2014 [ permalink ] | Read more »
Logitech Protection + Power iPhone5/5S C...
Made by: Logitech Price: $99.99 Hardware/iOS Integration Rating: 3 out of 5 stars Usability Rating: 0.5 out of 5 stars Reuse Value Rating: 0.75 out of 5 stars Build Quality Rating: 0.75 out of 5 stars Overall Rating: 1.25 out of 5 stars | Read more »
This Is Not a Test Goes Free, Permanentl...
This Is Not a Test Goes Free, Permanently Posted by Jessica Fisher on October 31st, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Swap Heroes Review
Swap Heroes Review By Campbell Bird on October 31st, 2014 Our Rating: :: STRATEGIC SWAPPINGUniversal App - Designed for iPhone and iPad Rotate a cast of heroes to fend of waves of monsters in this difficult, puzzle rpg.   | Read more »
Night Sky Pro™ (Reference)
Night Sky Pro™ 3.0.1 Device: iOS Universal Category: Reference Price: $2.99, Version: 3.0.1 (iTunes) Description: Night Sky Pro™Wonder No More™ Night Sky Pro™ is the ultimate stargazing experience. From the creators of the original... | Read more »
Audio Defence : Zombie Arena (Games)
Audio Defence : Zombie Arena 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: A zombie shooter audio game. Made from gut-wrenching 3D binaural sound, for a new kind of weird immersion. You... | Read more »
RPG Asdivine Hearts (Games)
RPG Asdivine Hearts 1.1.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1.0 (iTunes) Description: SPECIAL PRICE50% OFF (USD 7.99 -> USD 3.99)!!! Travel alongside four companions and a cat in the adventure of a... | Read more »

Price Scanner via MacPrices.net

Tablets Ascendent Again; Global Tablet Market...
The worldwide tablet grew 11.5% year over year in the third quarter of 2014 (3Q14) with shipments reaching 53.8 million units according to preliminary data from the International Data Corporation (... Read more
Apple now offering refurbished 2014 13-inch R...
The Apple Store is now offering Apple Certified Refurbished 2014 13″ Retina MacBook Pros for up to $270 off the cost of new models. An Apple one-year warranty is included with each model, and... Read more
Apple Regains Momentum As Windows Stutters An...
The latest smartphone sales data from Kantar Worldpanel ComTech, for the three months to March 2014, shows Apple performing strongly in the first quarter of the year, with sales bouncing back in... Read more
Worldwide Smartphone Shipments Increase 25.2%...
New smartphone releases and an increased emphasis on emerging markets drove global smartphone shipments above 300 million units for the second consecutive quarter, according to preliminary data from... Read more
Apple now offering refurbished 2014 15-inch M...
The Apple Store is now offering Apple Certified Refurbished 2014 15″ Retina MacBook Pros for up to $400 off the cost of new models. An Apple one-year warranty is included with each model, and... Read more
Apple drops prices on refurbished 2013 Retina...
The Apple Store has dropped prices on 2013 Apple Certified Refurbished 13″ and 15″ Retina MacBook Pros, with Retina models now available starting at $999. Apple’s one-year warranty is standard, and... Read more
New 2.8GHz Mac mini on sale for $949, save $5...
Abt Electronics has the new 2.8GHz Mac mini in stock and on sale for $949.05 including free shipping. Their price is $50 off MSRP, and it’s the lowest price available for this model from any reseller... Read more
Sale! 3.7GHz Quad Core Mac Pro available for...
 B&H Photo has the 3.7GHz Quad Core Mac Pro on sale for $2649 including free shipping plus NY sales tax only. Their price is $350 off MSRP, and it’s the lowest price for this model from any... Read more
Mujjo Steps Up The Game With Refined Touchscr...
Netherlands based Mujjo have just launched their Refined Touchscreen Gloves, stepping up their game. The gloves feature a updated elegant design that takes these knitted gloves to the next level. A... Read more
Sale! Preorder the new 27-inch 5K iMac for $2...
 Abt Electronics has the new 27″ 3.5GHz 5K iMac on sale and available for preorder for $2374.05 including free shipping. Their price is $125 off MSRP, and it’s the lowest price available for this... Read more

Jobs Board

Position Opening at *Apple* - Apple (United...
…Summary** As a Specialist, you help create the energy and excitement around Apple products, providing the right solutions and getting products into customers' hands. You Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** Being a Business Manager at an Apple Store means you're the catalyst for businesses to discover and leverage the power, ease, and flexibility of Apple Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** As more and more people discover Apple , they visit our stores seeking ways to incorporate our products into their lives. It's your job, as a Store Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** At the Apple Store, you connect business professionals and entrepreneurs with the tools they need in order to put Apple solutions to work in their Read more
Solutions Specialist with *Apple* Knowledge...
Company Description: We are an Apple Authorized Sales and Service Provider. We have been selling and servicing Apple computers in the Fairfield County area for over Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.